We have:
Total number of cards = 52
If you win then you will get = $70
If you lose then you will give him = $10
Therefore, first let us calculate the probability that three fives cards will be drawn with replacement:
[tex]P(3\text{ fives cards)=}\frac{4}{52}\times\frac{4}{52}\times\frac{4}{52}=0.000455[/tex]
Next, the probability that it will not draw three fives in succession is:
[tex]P(\text{not 3 fives cards)=}1-0.000455=0.999545[/tex]
Hence, for each game the expected return would be:
[tex]0.000455\times70-0.999545\times10=0.03185-9.99545=-9.9636[/tex]
For 30 times:
[tex]-9.9636\times30=-298.91[/tex]
So, you lose $298.91
Answer:
Lose
$298.91
